Job growth slowed slightly in March, but unemployment remains historically low.
According to new figures released Friday by the U.S. Bureau of Labor Statistics, the nation added 236,000 jobs, with the unemployment rate at 3.5 percent. The unemployment rate was down slightly from the 3.6 percent in February.
The 236,000 jobs added last month was behind the pace of the first two months of the year. In January, 472,000 jobs were added and February saw an increase of 326,000.
Leisure and hospitality continued to lead the job growth, adding 72,000 jobs in March. It was behind the industry’s average for the past six months of 95,000. The industry remains 2.2 percent or 368,000 jobs behind its pre-pandemic level in February 2020.
Government employment increased by 47,000. Professional and business services added 39,000 positions. Healthcare gained 34,000 spots, social assistance 17,000 and transportation and warehousing 10,000.
The retail sector lost 15,000 jobs.
The average hourly earnings continued to rise, gaining 9 cents, or 0.3 percent, to $33.18. In the past year, earnings are up 4.2 percent.
The average workweek also dropped 0.1 hour to 34.4 hours for all employees. In manufacturing, the average workweek stayed at 40.3 hours.
Labor participation increased to 62.6 percent.
The latest labor numbers were likely not impacted by the latest efforts by the Federal Reserve to control inflation. In March, the Fed announced another increase of 25 basis points in the target rate for federal funds. The new target range is 4.75 to 5 percent. It was the ninth rate increase in the past year and second straight hike of a one-quarter of a point. Previous hikes ranged from three-quarters to half a point.
The annual inflation rate in February remained at 6 percent.
The Federal Reserve noted a tight labor market with labor demand exceeding supply. With credit tightening due to stress in the banking industry and the rise in rates, Federal Reserve projections expect the labor market to soften later this year, with unemployment increasing to 4.5 percent.
